A Discrete Time Pricing Model for Individual Insurance Contracts
AbstractMost ratemaking principles or models for insurance pricing in the literature do not seem to incorporate at least one of the following three elements: contingency of claims, investment income of insurers, and insolvency risk of insurers. As far as we know, Doherty-Garven (1986) appears to be the only model that incorporates all the three components. Their model provides a solution for the “fair” rate of return of an insurer or the aggregate premium of an insurer. Their study has some important implications in terms of “excessiveness” and “adequacy” of the aggregate premium. In this paper, we developed a pricing model with which a premium can be assigned to an insurance contract. Our effort may have some important implications in terms of the “fairness” of the individual premium of an insurance contract.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Western Risk and Insurance Association in its journal Journal of Insurance Issues.
Volume (Year): 27 (2004)
Issue (Month): 1 ()
Contact details of provider:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Gatzert, Nadine & Schmeiser, Hato, 2008. "The influence of corporate taxes on pricing and capital structure in property-liability insurance," Insurance: Mathematics and Economics, Elsevier, vol. 42(1), pages 50-58, February.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (James Barrese).
If references are entirely missing, you can add them using this form.